Barclays has revised its price target for Sotera Health (SHC, Financial), reducing it to $12 from the previous $16. Despite this adjustment, the firm maintains an Overweight rating on Sotera Health's shares. This change comes as part of a broader assessment of the life science tools and diagnostics sector ahead of the first-quarter earnings reports.
The adjustment reflects concerns over potential impacts from pharma-specific tariffs, which could prompt further budget reductions within the industry. These tariffs make the tools segment less defensive than it has been historically, according to the analysis. Barclays also made note of a downgrade in the outlook for contract research organizations, citing reduced visibility as a key factor.
